New tariffs for solar power projects released

• 11 May 2022

Why In News?

Recently, the Uttarakhand Electricity Regulatory Commission has issued a new tariff for solar power projects after two years, refusing to extend the period for setting up of a new project of Uttarakhand Renewable Energy Development Agency (Ureda) at old rates.

Key Point

• Ureda had received 1472 applications under the Mukhyamantri Solar Swarozgar Yojana, out of which 781 projects were issued letter of award by Ureda. Due to the Covid pandemic and then the assembly elections, the establishment of these projects had slowed down.
• The rule was that only those projects which will be set up by March 31, 2022, will be able to sell power to UPCL at the rate of Rs 4.49 per unit.
• Under the scheme, 70% of the project cost will be taken as a loan from the State and District Co-operative Banks at the rate of 8% interest and the remaining amount will be borne by the concerned beneficiary as margin money.
• Under the scheme, the grant will be up to 30% in the border districts of the State and up to 25% in hilly districts and 15% in other districts.
• Under this scheme, eligible persons (permanent residents of the State) will be able to set up solar power plants by taking their private land or land on lease.
• Under this, 10,000 unemployed persons of the state will be provided employment.